India’s E2W profitability is no longer just about lowering battery costs. The bigger challenge is building an ecosystem that balances performance, risk, localization and lifecycle value.
In an exclusive interaction with Thiruamuthan, Assistant Editor at Industry Outlook, Sneha Oberoi, CFO, CTO and Executive Officer - Administration, Suzuki Motorcycle India, discusses how battery economics are shaping profitability in the E2W industry and why a lifecycle approach is becoming essential for sustainable business growth.
Read the full interview to understand the economics shaping electric two-wheeler battery profitability.
You’ve built a career around costing, profitability and strategic decisions. How has that experience shaped your approach to evaluating new technology investments?
My experience has taught me that technology investments should be evaluated through a business lens, not just a technical lens. While innovation is critical for long-term growth, every investment must demonstrate sustainable value creation over its entire lifecycle.
When evaluating new technologies, I focus on five key aspects: customer value, total cost of ownership, scalability, risk-adjusted returns and long-term strategic relevance. In electric mobility, this means looking beyond the battery purchase price and assessing factors such as product competitiveness, warranty exposure, supply-chain resilience, serviceability, regulatory requirements and future sustainability.
I strongly believe that finance should not be involved only after a technology decision has been made. The most successful outcomes occur when finance, engineering, procurement, manufacturing and business teams work together from the concept stage. Such a cross-functional approach helps ensure that technological innovation is converted into commercially sustainable and profitable business models.
A principle that guides her vision: Think long term, stay curious and never compromise on integrity. Sustainable success is achieved when innovation, financial discipline and customer trust move together.
With batteries representing a major E2W cost, how should CFOs balance near-term cost reduction with performance, warranty exposure and long-term profitability?
The objective should not be to procure the cheapest battery, but to achieve the best lifecycle economics.
A lower upfront battery cost may appear attractive initially, but any compromise in reliability, performance, safety or durability can result in significantly higher warranty costs and customer dissatisfaction over time. Therefore, battery decisions should be evaluated from a long-term value perspective rather than purely from a procurement-cost perspective.
CFOs should consider factors such as expected battery life, warranty risk, safety performance, product reliability and customer experience alongside acquisition cost. Sustainable profitability is achieved when cost competitiveness is balanced with quality, safety and brand trust. Ultimately, a battery that delivers consistent performance throughout its life often creates greater value than one that simply offers a lower purchase price.
The future of electric mobility will not be defined by the lowest battery cost, but by how effectively manufacturers create value across the entire battery lifecycle
How is battery localization changing E2W economics, and where can domestic value addition deliver meaningful margin benefits?
Localization has the potential to improve competitiveness far beyond simple cost reduction. It helps manufacturers reduce logistics costs, shorten lead times, improve supply-chain resilience and lower foreign exchange exposure.
More importantly, localization enables the development of a stronger domestic ecosystem covering batteries, electronics, software and manufacturing capabilities. This creates opportunities for better cost control, faster innovation cycles and closer collaboration with suppliers.
In the long run, the greatest benefit comes not only from local production but from building local capabilities that improve quality, flexibility and responsiveness to market needs. A robust localization strategy can therefore support both margin improvement and long-term business sustainability.
With battery degradation creating long-term warranty liabilities, how should manufacturers structure financial provisions?
Battery warranty management is becoming an increasingly important aspect of electric vehicle profitability. Manufacturers should adopt a data-driven approach that reflects actual customer usage and real-world performance rather than relying only on historical assumptions.
Factors such as riding patterns, charging behaviour, operating conditions and climate can significantly influence battery performance over time. As connected vehicle technologies and data analytics continue to improve, companies can better predict performance trends and estimate future warranty obligations more accurately.
The objective is to maintain a prudent balance between protecting customer confidence and ensuring financial discipline. A systematic and data-based provisioning methodology can help reduce earnings volatility while supporting a positive ownership experience.
As batteries enter replacement, second-life and recycling markets, how could residual battery value reshape economics?
The future battery ecosystem will extend well beyond the initial vehicle sale. As replacement, second-life and recycling markets mature, batteries will increasingly be viewed as assets that retain value throughout their lifecycle.
Opportunities in second-life applications, material recovery and recycling can help reduce the overall cost of ownership for customers while creating additional value streams for manufacturers. This shift towards a more circular economic model can improve resource efficiency, support sustainability goals and enhance long-term profitability.
As the industry evolves, residual battery value could become an important component of overall electric vehicle economics rather than being treated as an end-of-life consideration
Looking ahead, will battery cost reduction alone determine E2W profitability?
Battery cost reduction will continue to play an important role, but it will not be the sole determinant of profitability.
The companies that succeed in the long term will be those that effectively manage the entire battery value chain, including sourcing, localization, manufacturing efficiency, warranty management, customer experience, replacement strategies and recycling initiatives.
Profitability in electric mobility will increasingly depend on how efficiently manufacturers manage batteries throughout their lifecycle rather than simply focusing on acquisition costs. The industry leaders will be those that combine technological innovation, operational excellence and financial discipline to create sustainable value for both customers and stakeholders.
So, in overall the future of electric mobility will not be defined by the lowest battery cost, but by how effectively manufacturers create value across the entire battery lifecycle while delivering a safe, reliable and sustainable customer experience
Build expertise before seeking recognition. Deep knowledge creates long-term credibility and confidence.
Speak up with conviction. Well-prepared views backed by facts deserve a place in strategic discussions.
Develop cross-functional understanding. The leaders of tomorrow must understand business, technology and people equally well.
Invest in people and build strong teams. Leadership is not measured by individual success but by the success of the team and organisation.
Stay authentic and resilient. Challenges are inevitable, but integrity, consistency and perseverance are what create enduring leadership.
Sneha Oberoi is a seasoned business leader with over 25 years of experience across finance, business strategy, operations, and corporate administration, with leadership roles at Suzuki Motorcycle India, Wockhardt Hospitals, Volvo Car India, Hyundai Motor India, and PwC. As CFO and Executive Officer at Suzuki Motorcycle India, she has led strategic initiatives spanning profitability, costing, investments, compliance, taxation, IT, and cross-functional business transformation.
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